EastGroup Properties Inc. (EGP - Snapshot Report) , an equity real estate investment trust, declared the closure of its formerly announced issuance of senior unsecured notes worth $100 million through private placement, having a fixed rate of interest of 3.8%. Further, a semi-annual interest has to be paid on these notes along with the repayment of principal amount of $30 million on Aug 30, 2020, $50 million on Aug 30, 2023 and $20 million on Aug 30, 2025.
From Jun 30, 2013, EastGroup, under its Continuous Equity Program, has sold 296,435 common shares at an average price of $60.34 per share. The gross proceeds from the sale were $17.9 million.
Alongside, EastGroup declared two new developments. The company plans to construct 2 buildings at World Houston International Business Center – World Houston 39 and World Houston 40. World Houston 39 would be a cross-dock business distribution building spanning over 94,000 square feet with a total estimated investment of $5.7 million. The construction of the building is slated for completion in the second quarter of 2014 and would be offering a multi-tenant space.
Additionally, EastGroup would construct another building – World Houston 40 – spanning over 202,000 square feet with an estimated total investment of $11.7 million. Moreover, it would be 100% leased to a single user and occupied in the third quarter of 2014.
Further, EastGroup plans to construct another multi-tenant business distribution building – Rampart IV – at Denver, adjoining Rampart 3. The building will span over 84,000 square feet with an estimated total investment of $8.3 million. Moreover, the construction of the building is expected to be completed in the second quarter of 2014.
EastGroup engages in the development, acquisition and operation of industrial properties in major Sunbelt markets across the United States, mainly in the supply-constrained submarkets of Florida, Texas, Arizona, California and North Carolina. The company‘s growth strategy is mainly based on acquiring leading distribution facilities located near major transportation centers for catering to local customers.
EastGroup currently carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the same industry include CubeSmart (CUBE - Snapshot Report) , Douglas Emmett Inc (DEI - Snapshot Report) and Getty Realty Corp. (GTY - Snapshot Report) . All these carry a Zacks Rank #2 (Buy).